The demand for gold coins has hit an all time high, the South Africa Gold Coin Exchange said on Friday.

“The rapidly growing demand for gold coins strongly suggests that the gold bull market is well set to extend itself strongly into the future,” said chairman Alan Demby in a statement.

An increasing number of analysts and commentators were predicting strong gold price advances, Demby added.

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He said during the course of 2008, the value of the exchange’s sales of gold coins, primarily Krugerrands, was a substantial 80% higher than in 2007.

“I accept that exchange has grown its market share, but this has played no more than a minor role in our headlong revenue growth, which I am convinced emanates from a belief that gold is the ultimate hedge against the uncertainty generated by the global financial meltdown,” Demby said.

Furthermore, Demby said, UBS Investment Research forecasts gold to hit US$2500 an ounce in the next five years as prospects of either deflation or inflation become more extreme.